Parl passes Insolvency and Bankruptcy bill

— By Agencies | Aug 11, 2018 12:21 am

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New Delhi : A bill to amend the Insolvency and Bankruptcy Code (IBC) 2016, allowing home buyers to be treated as financial creditors and seeking to set up a special dispensation for small sector enterprises, was passed by Parliament on Friday.

The bill, which was passed in Lok Sabha on July 31, was approved in the Rajya Sabha today by voice vote.

The legislation seeks to replace the June 6 ordinance that sought to put these amendments into force to aid quick resolution of several bankrupt firms.

Finance Minister Piyush Goyal said its objective was to provide resolution to small bankrupt firms and, at the same time, take stringent action against big bankrupt businesses. He said the bill aims to ensure that all cases are led to resolution instead of liquidation.

“We want faster resolution of cases. ….We don’t want liquidation. Insolvency will not help the country. Assets worth crores should put to use,” he said.